The fund contract will be closed for operation within three years after it takes effect, and then it will be converted into a listed open-end fund after three years. What do you mean by closed operation within three years after the fund contract takes effect? "Closed operation within three years after the fund contract takes effect" means that the fund operates in the form of closed fund within three years.

Closed-end fund refers to a securities investment fund that has determined the total amount of issuance and the issuance period at the time of establishment, and fixed the total amount of issuance within the prescribed period after issuance. Investors of closed-end funds can't redeem their fund shares from the issuer during the fund's existence, and the realization of fund shares must be listed and traded on the stock exchange.

The circulation of fund shares is listed on the stock exchange, and investors must bid on the secondary market through securities brokers in the future.

Extended data

Operation mode of open-end fund:

Open-end fund means that fund sponsors can sell fund shares or shares to investors at any time according to their needs when setting up a fund, and can redeem the issued fund shares or shares at the request of investors.

Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.

Baidu Encyclopedia-Open Fund

Baidu encyclopedia-closed-end fund